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May 10, 2013
Forex Flash: NOK: What's going on - Nomura
FXstreet.com (Barcelona) - Nomura strategist Matthew Slade has asked the question, “What´s going on with NOK?”
He begins by noting that the Norwegian economy should continue to improve throughout 2013, benefiting from robust oil prices, expansionary fiscal policy, low interest rates and an improvement in household consumption. Further, he notes that while the krone has been unquestionably strong over a sustained period suppressing inflation and weakening demand for mainland exports, he expects the Norges Bank to refrain from a further rate cut unless there is a material change in the data. He writes, “Furthermore, we do not expect mainland exports to threaten economic activity going forward because of the monetary and fiscal stimulus currently in place.”
He begins by noting that the Norwegian economy should continue to improve throughout 2013, benefiting from robust oil prices, expansionary fiscal policy, low interest rates and an improvement in household consumption. Further, he notes that while the krone has been unquestionably strong over a sustained period suppressing inflation and weakening demand for mainland exports, he expects the Norges Bank to refrain from a further rate cut unless there is a material change in the data. He writes, “Furthermore, we do not expect mainland exports to threaten economic activity going forward because of the monetary and fiscal stimulus currently in place.”